Korean Media: Electric Vehicle Battery Market Is "China's Domain" — Reaping the Benefits Alone

On October 12, South Korea’s *Business Korea* published an article stating that despite global electric vehicle (EV) battery market growth exceeding 16% this year, South Korean firms have seen little change in their market share. As Chinese companies reap the benefits of market expansion, South Korea’s three major battery manufacturers are shifting their focus from EVs to energy storage systems (ESS).

Data from SNE Research, a specialized energy market research firm, shows that global EV battery installations reached 469.2 GWh between January and May, marking a 16.3% year-on-year increase.

However, during the same period, LG Energy Solution and SK On combined for 56.8 GWh in installed capacity—essentially unchanged from the same period last year. While the overall market expanded by 65.9 GWh, the South Korean industry’s share grew by only 0.1 GWh.

Chinese firms have significantly benefited from market expansion. Contemporary Amperex Technology Co. Limited (CATL) maintained its leading position with 188.4 GWh in usage, up 22.9% year on year, capturing a market share of 40.2%, a 2.2-percentage-point increase from the previous year. BYD followed with 67.6 GWh, growing at just 0.4%, but together the two companies accounted for 54.6% of the market—more than half of all EV batteries sold globally originate from these two Chinese firms.

Growth among other Chinese companies has also been robust. CALB recorded 23.8 GWh, up 36.3%; Guoxuan High-Tech achieved 21.7 GWh, up 37.0%; EVE Energy registered 15.4 GWh, up 35.2%; and Cobolt Energy reached 12.1 GWh, up 35.3%. These growth rates more than double the market average of 16.3%.

SNE Research analysis indicates that these companies are broadening their supply reach by expanding beyond China’s domestic market into overseas passenger vehicles, commercial vehicles, and ESS applications. Among the top ten battery suppliers, seven are Chinese firms, collectively holding 72.6% of the market share.

As Chinese enterprises rapidly rise, South Korea’s market share continues to shrink. LG Energy Solution saw its usage grow by 7.3% to 41.0 GWh—below the market average—resulting in a decline in its market share from 9.5% to 8.7%. SK On experienced a 5.8% drop in usage to 15.8 GWh, reducing its share from 4.2% to 3.4%. Samsung SDI fell entirely out of the top ten.

With intensified competition driven by Chinese dominance in the EV battery sector, South Korea’s three major battery manufacturers are increasingly positioning ESS as a new growth engine. Their prior production strategy, centered on EVs, is undergoing rapid recalibration toward the energy storage systems domain.

Original source: toutiao.com/article/1878829363961031/

Disclaimer: The views expressed in this article are those of the author alone.